Can You Become Rich by Making More Money?

Can You Become Rich by Making More Money?

by Roman on January 24, 2011

When you’re measuring your financial progress, most of you may think that you could just be richer if you could make more money per month. But have you ever though whether making more money is enough to make you richer?

One of the most controversial debates that are currently going on in the world of personal finances is what constitutes rich. Most people agree that the place they live at makes a big difference in whether or not you feel that you’re rich. Standard of living is the most important thing that determines your richness. Becoming debt free in a place where the standard of living is high is much more difficult than paying off debts in a low profile place.

Being rich is not only determined by how much money you make each month, but it is rather how much money is left over at the end of the month, that counts.

Making more money does not translate into having the money to spend on whatever you want.

What are the expenses that drain off your wealth?

It is worth noting that there are some particular expenses that drain away wealth, no matter how much money you make each month. Staying educated on these spheres will help you avoid such expenses so that you can maintain a wealthy life.

1. Your house or car

Most people in America turn out to be house poor. They decide to get a big house and then terribly struggle to make both ends meet. If you have not been modest while purchasing your home and you had stupidly bought a home beyond your affordability, you must have been suffering lately. Since the financial crash, it has been surveyed that most homeowner’s monthly housing costs comprise of half of their monthly income. The same theory goes for a dear car for whose insurance you cannot arrange money.

2. Your unsecured debts

Your unsecured debts are a big expense for you. What can be more unfortunate than having unsecured debt obligations and paying interest rates to someone else instead of using that money to invest for your future? There are instances of people who make more than $150,000 per year but are saddled with unsecured credit card debt and feel themselves to be nothing but poor creatures who are failing to make both ends meet.

Monetary resolutions to set your foot on a wealthy life?

After some studies have been made among the affluent, it has been derives that planning, perseverance, dedication, hard work and self-discipline is what it takes to be a wealthy man. Here are some monetary resolutions that must be taken by every individual in order to build wealth and take a plunge into the life of a millionaire.

1. Live below your means

Don’t be fooled by the average lifestyle of a millionaire. The keyword to living a life of a true millionaire in the near future is ‘frugal’. Most financial experts believe that leading a frugal life is the secret of saving for your future. The typical Americans are known for working hard, making money and then spending it well. You must change this spending habit and make sure that you stop buying unnecessary things that you can do without.

2. Evaluate the importance of saving each dollar

When you put in your efforts in saving money, you can soon understand how spending $10 and $30 dollar makes a huge difference. You must always remember that money has the ability to work in your place and therefore, the more you employ it, the faster it will grow with time. Try to save money at every step of life and enjoy leading a frugal life so that you can soon get the results you desire.

3. Become proficient as an investor

In order to boost your savings and build wealth, you can try becoming a proficient investor. Investment is one of the best ways to make money and also boost your savings by controlling them. Get to know about the investment market so that you can understand the fluctuations and take good control over your investments. Also make sure that you manage a balanced portfolio that will help you gain maximum profits with minimum risks.

As you might think that there’s nothing wrong with spending money on things that seem to be important to you, you must reconsider your decision. The actual concept of being ‘rich’ is being able to spend money for what you need now, save money for your future and spend a little in purchasing things that you like. Lead a debt free life and boost your income so that you reach one step closer to becoming a millionaire.

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Yentily – Can You Become Rich by Making More Money? « Ndsram's Blog
April 19, 2011 at 8:56 pm

{ 6 comments }

Bob January 25, 2011 at 2:17 pm

Outstanding advice!
If only our federal and local governments could follow it.

Caolan Patrick – Wealth Creation Expert January 27, 2011 at 7:28 am

Almost everyone has the chance to be a millionaire as long as you spend less than what you have earn, earn more than you spend, live within your means, saving money and investing for business and at the end you will be able to achieve your goals. We thought that becoming rich can be achieve in a short time but the truth is it is a long process and you will encounter tough challenges. You need to make a thorough planning, you must know what you want, make an action and Evaluate often to see how you are going.

Michael March 25, 2011 at 12:59 pm

A key ingredient to becoming wealthy that is missing from this advice: start your own company! The mantra among investors is, “Invest in what you know.” You can never know more about the goals of a person running a company listed on the NYSE than you can know about yourself.

sumit April 8, 2011 at 5:38 pm

meaning full advice………….n one of d best advice is to control our unnecessary debts

A'Y LEGEND October 26, 2011 at 3:24 am

I start my buss now pls help me to richest

Paula Young, LMFT December 18, 2011 at 11:18 pm

A piece of advice I once heard about building your nest egg is to take care of your money. Pay attention to it. Don’t be off-handed about it. I’ve been following this advice, even in the smallest ways: For example, I keep the bills in my wallet in order w/the largest in the back and the 1 s in the front. I also make sure they are right side up in my wallet!
It follows the advice that what you keep in your consciousness, what you attend to in your life, is what will grow.
I’m not wealthy yet but, still hoping!

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